What is in store for the Mortgage Market in 2024

We recently had the opportunity to listen to a podcast by Jeremy Duncombe, the managing director of Accord Mortgages. He interviewed two experts about what is in store for the Mortgage market in 2024.

Here are some of the critical points.

Expert Opinion

Charles Roe, Director of Mortgages at UK Finance,  and Rob Thomas, Principal Researcher at IMLA, both experts, shared their views about what’s in store for the mortgage market in 2024.

Charles believes there are continuing challenges in the market, particularly about affordability, but stresses it is not all doom and gloom.

For example, he says the Bank of England should reduce interest rates over the coming months, leading to swap rates coming down and home movers coming back into the market.

Rob adds that he expects house prices to increase if interest rates fall this year. However, he points out that while the market expects conditions to improve this year, the geopolitical background remains fragile, particularly in the Middle East.

The Market for Landlords

Jeremy then asks what is in store for the Mortgage Market in 2024 for the buy-to-let sector.

Rob believes the underlying picture is quite strong as rents are still rising, which means there is still high demand.

However, Charles believes ongoing uncertainty about net zero and energy-efficiency policies remains an issue for landlords.

Budget Expectations for First-Time Buyers

Next, Jeremy asks about what’s likely to come in the Chancellor’s Spring Budget.

Charles says he wants the government to look at the Lifetime ISA scheme. To make it fairer for homeowners who wish to take out some funds and for stamp duty to be permanently extended to £425,000.

Rob also adds that he would like the Chancellor to announce measures to help first-time buyers.

Charles pointed out that this is likely the last budget before a general election, and he believes first-time buyers are a bigger priority for the government than other aspects of the housing market.

There are many good reasons for that,  as we still have a real problem with people getting into the housing market.

There is little help for first-time buyers, although we have the mortgage guarantee scheme, which will continue until next year. The government has been floating ideas in this space talking about the 99% mortgage (1% deposit), although it’s not favoured by many.

We’ll have to see about that.

How can Mortgage Advisers Help?

Finally, Jeremy asks Charles and Rob how mortgage brokers and firms can help clients in 2024 and beyond.

Read about the benefits of using a mortgage broker

Charles emphasizes the critical role mortgage brokers play in the success of the UK’s housing market and predicts a continued rise in the proportion of mortgages handled by brokers.

Rob believes brokers can also provide valuable advice to clients in the later-life lending market, as many baby boomers are reaching an age where they’re paying off their mortgages.